The future of round-the-clock (RTC) renewable energy could be remarkably affordable, costing just about ₹6 (~$0.07)/kWh when utilizing green hydrogen for storage, said Union Minister for Power and New & Renewable Energy R. K. Singh said at a conference on clean energy.

He said, “Green hydrogen is cheaper than gas and battery energy storage systems. We have come up with a pilot bid for about 100 MW which we hope will establish the benchmark. Once we are able to use green hydrogen for our energy requirements, all supply chain issues, such as the availability of lithium-ion batteries, will be resolved.”

Singh added that this cost-efficient approach would enable RTC renewable energy at a rate lower than the average price of power on the energy exchange, which has recently been ₹8 (~$0.09) per unit.

The Minister said the basic legal framework for a carbon market has been formulated. The government is contemplating permitting the industry gain carbon credits for green hydrogen and green ammonia exported from India. With this, the industry will have yet another advantage, which will make Indian industry even more competitive.

He said the National Green Hydrogen Mission is well underway, with plans to make India a major exporter of green hydrogen and green ammonia, thanks to the country’s competitive pricing.

The Minister encouraged industry leaders to transition from thermal energy to renewables. The introduction of Green Open Access Rules, which allows entities to set up capacity anywhere and transfer it as needed, was one such initiative aimed at lowering energy costs.

“I have written to all industry captains to switch over from thermal to renewables; this shift will also bring down the price of energy,” Singh said.

On the surging energy demand in India due to a rapidly growing economy, he was confident renewable energy would play a pivotal role in meeting this demand.